PHP becomes first UK REIT to launch retail bond
GP landlord Primary Health Properties (PHP) has become the first UK REIT to launch a retail bond.
The bonds will pay a fixed rate of interest of 5.375% twice yearly in January and July. The offer period opened today (3 July) and is expected to close on 16 July 2012.
PHP said it expects the bonds to be listed on the London Stock Exchange (LSE) and admitted to trading on the LSE's Order Book for Retail Bonds.
Harry Hyman, managing director of PHP, said: "PHP is seeking access to a wide variety of sources of capital to expand its portfolio whilst diversifying its funding sources.
“We believe that a retail bond offers a good opportunity to achieve this and enables fixed income investors, a new class of investor to the company, to benefit from PHP’s consistent income streams which provide stable returns.”
PHP owns over 160 primary healthcare facilities, both completed and committed, with an average unexpired lease term of 16 years.